OPEC delays unwinding voluntary cut of 2.2 million barrels of crude
December 5, 2024
The DOE inventory report came out and it showed crude oil inventories down 5.07 million barrels, gasoline was up 2.36 million barrels, and distillates were up 3.38 million barrels.
Propane inventories were down 662,000 barrels, much less than expected. Total stocks are 96.032 million still in a very comfortable position. Last year at this time total stocks were 96.967 million. Midwest stocks were down 884,000 putting total Midwest stocks at 26.614 million and last year there were 27.173 million barrels. Gulf Coast stocks were down 226,000 barrels putting total Gulf Coast stocks at 55.689 million and last year there were 52.770 million barrels.
Propane exports were up a big 821,000 barrels putting exports up near the highs at 2.190 million bpd.
Total crude oil stocks are now at 423.375 and last year there were 455.031. Total gasoline stocks are now at 214.603 and last year there were 223.604. Total distillates stocks are now at 118.100 and last year there were 112.045.
Gasoline inventories are still well below their seasonal averages and even with the recent builds, inventories are now 9.6 million barrels below the 5-year seasonal average.
Distillate inventories are 5.9 million barrels below the 5-year seasonal average, but this is slightly below the previous week’s 6.1-million-barrel deficit.
OPEC delays the unwind of 2.2 million “voluntary cut” from January 2025 to April 2025; that was largely in line with expectations. The cut is phased out through September 2026 instead of a one-year phase out , which was a surprise. This news has offered some support to crude prices.